We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Meritage (MTH) Surges 10.1%: Is This an Indication of Further Gains?
Read MoreHide Full Article
Meritage Homes (MTH - Free Report) shares soared 10.1% in the last trading session to close at $178.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.6% gain over the past four weeks.
Many homebuilding companies, like Meritage Homes, saw their stock prices surge after the Fed decided to keep the interest rate benchmark between 5.25% and 5.5%. Furthermore, the Federal Open Market Committee anticipates at least three rate cuts in 2024.
This homebuilder is expected to post quarterly earnings of $5.24 per share in its upcoming report, which represents a year-over-year change of -26.1%. Revenues are expected to be $1.54 billion, down 22.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Meritage, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MTH going forward to see if this recent jump can turn into more strength down the road.
Meritage is a member of the Zacks Building Products - Home Builders industry. One other stock in the same industry, M/I Homes (MHO - Free Report) , finished the last trading session 7.7% higher at $123.67. MHO has returned 12.7% over the past month.
For M/I Homes, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.94. This represents a change of -4.1% from what the company reported a year ago. M/I Homes currently has a Zacks Rank of #3 (Hold).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Meritage (MTH) Surges 10.1%: Is This an Indication of Further Gains?
Meritage Homes (MTH - Free Report) shares soared 10.1% in the last trading session to close at $178.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.6% gain over the past four weeks.
Many homebuilding companies, like Meritage Homes, saw their stock prices surge after the Fed decided to keep the interest rate benchmark between 5.25% and 5.5%. Furthermore, the Federal Open Market Committee anticipates at least three rate cuts in 2024.
This homebuilder is expected to post quarterly earnings of $5.24 per share in its upcoming report, which represents a year-over-year change of -26.1%. Revenues are expected to be $1.54 billion, down 22.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Meritage, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MTH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Meritage is a member of the Zacks Building Products - Home Builders industry. One other stock in the same industry, M/I Homes (MHO - Free Report) , finished the last trading session 7.7% higher at $123.67. MHO has returned 12.7% over the past month.
For M/I Homes, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.94. This represents a change of -4.1% from what the company reported a year ago. M/I Homes currently has a Zacks Rank of #3 (Hold).